Factoring Accounts Receivable Has All of the Following Characteristics Except

question 118

Multiple Choice

Factoring accounts receivable has all of the following characteristics except:

• A) money is advanced to the borrower as a loan against accounts receivable
• B) accounts receivable balances are removed from the balance sheet
• C) the customer payment is made to the factor
• D) the borrower sells the receivable

Recognize the importance of disclosing significant changes, such as changes in accounting principle or estimates, in interim reports.

Learn the criteria for reportability of operating segments under the revenue, profit or loss, and asset tests.

Understand how inventory and long-term contract losses are treated in interim financial reports.

Grasp the requirements for disclosing earnings per share and other key financial items in interim reports.

---

Definitions:

Thyrotropin

A hormone produced by the pituitary gland that stimulates the thyroid gland to produce thyroid hormones.

Thyroid-Stimulating Hormone

A hormone produced by the pituitary gland that regulates the production of hormones by the thyroid gland.

Adrenocortical Hormones

Steroid hormones produced by the adrenal cortex, involved in various bodily functions such as stress response, immune response, and metabolism.

Corticoids

A class of steroid hormones produced in the adrenal cortex or made synthetically, used especially for their anti-inflammatory and immunosuppressive properties.